Valkyrie Anticipates Spot Bitcoin ETF Approval by Wednesday End

In an exclusive interview with Fortune, Valkyrie co-founder Steven McClurg expressed optimism about the imminent approval of their Spot Bitcoin ETF, foreseeing the green light from the U.S. Securities and Exchange Commission (SEC) on Wednesday. McClurg went further to predict that trading could commence as early as Thursday morning. 

If trading commences on Thursday, McClurg envisions a substantial influx of funds, estimating between $200 million to $400 million for Valkyrie's ETF alone. He anticipates that the collective participant base might witness an inflow ranging from $4 to $5 billion over the initial weeks. 

While not all 13 ETF applicants may launch simultaneously, McClurg expects the first batch of 10 ETFs to debut concurrently.

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Insight into SEC Chairman Gensler and the Approval Process

Contrary to the often contentious stance towards SEC Chairman Gary Gensler within the crypto community, McClurg conveyed a positive perspective. He stated that Gensler has been "good for Bitcoin" throughout his tenure. 

In his conversation with writer Leo Schwartz, McClurg shed light on the comprehensive approval process undertaken by Valkyrie. Notably, he mentioned that there was no information regarding a commission vote on the ETF proposals. 

The co-founder also emphasized the use of cash for investment products, highlighting its role in accommodating a more extensive array of market participants.

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Retail Investors Likely First to Engage

Expressing a slight holding pattern before the expected launch, McClurg anticipates that retail investors will likely lead the charge in investing. He cites that financial advisors typically observe the initial trading period before recommending new products to clients, requiring a track record of two to three years from an ETF. 

Notably, McClurg foresees potential outflows from Grayscale's fund, GBTC, as retail and financial advisors shift their attention to the newly approved ETFs.

Notable figures in the industry, including Cathie Wood from Ark Invest, remark on the unique nature of the recent ETF application process. According to Wood, the SEC's inquiries are detailed and technical, indicating a more in-depth exploration of disclosures than in the past. 

Amidst discussions and speculations, Bloomberg's Eric Balchunas dismissed fears of eleventh-hour denials, emphasizing the extensive effort involved in the approval process. 

Since its January 3 low, Bitcoin has experienced a 14% rise, trading just below $47,000 now as signs point toward approval this week.